Showing posts with label geographical indications. Show all posts
Showing posts with label geographical indications. Show all posts

Friday, September 02, 2011

Does Drinking GI Protected Oolong Tea Help The Local Farmers?

What are the economic effects of Geographical Indications (GIs) on developing country producers? Deepthi Elizabeth Kolady (Research collaborator with International Food Policy Research Institute; visiting fellow at Cornell University), William Henri Lesser (Professor at the Dyson School of Applied Economics and Management, Cornell University) and Chunhui Ye (Associate Researcher at the China Academy for Rural Development, School of Management, Zhejiang University) asked themselves this important question and compared Darjeeling and Oolong Teas by doing empirical research to price elasticities in the products.
Law + 
Empirical Research 
The trio comes to the conclusion that GIs can benefit consumers and/or producers of food products. The distribution of benefits is dependent on the relative elasticities with the majority of benefits accruing to the least elastic element.
Read their report in the WIPO Journal (volume 2, number 2), here (p 157-172 = p 17-32 pdf).
 = Science
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Sunday, August 14, 2011

Sober Advice To Stop Counterfeit Wine As Lafite Bubble in China Attracts More Counterfeiters

China counterfeiters produce more "Lafite" 
then you can ever find in the 
Château Lafite Rothschild cellars in France
Photo: Wikipedia about Château Lafite Rothschild 
No, Lafite is not a kind of Champagne. It has no bubbles inside. But the market for Lafite could definitely be called a bubble. One can find more "Château Lafite Rothschild" wine bottles in China than they are exported from this reputable French wine house to China. Therefore, Lucas Botebol of Zhongguo Wine estimated in October 2010 that 70 percent of the Château Lafite Rothschild in China is fake, read here. Because of the increase in counterfeit Lafite supply the prices have not dropped a Renminbi. A fortiori, prices for a bottle of Lafite 2000 have risen 574 percent between 2001 and 2010. So demand must be growing very strongly. And this probably attracts even more counterfeiters.


Some sober advice
You do not need to be an oenologist to realise that until you are a connoisseur, you might want to drink some lower cost wine that can be très agréable. And even if you are a connoisseur it could not be excluded that your taste palate is better attuned to some other wines. To cash in on the bubble is nice for the wine house, but to lose control of your product on the China market is very risky. Fortunately it is in the counterfeiters interest that they make the counterfeit Lafite not too bad. Drinkers should not become ill or worse. If some drinker of counterfeit Lafite would die, for example, than the counterfeit Lafite market will be dead too. To prevent counterfeiters with a more short term mind from bottling dangerous concoctions, the brand should try to regain control over the complete chain of supply.

Start a breaking the glass ceremony
If I were a wealthy wine lover I would like to be able to verify via my phone whether the bottle that is served in the restaurant is the genuine product. Also there should be a "waterproof" cork system that is very hard to counterfeit. And as a kind of grande finale, after finishing the bottle, the bottle should be destroyed with a hammer as a kind of luck bringing ceremony and preventing future counterfeiters from giving the bottle a second life. If the restaurant is not doing it by themselves, one should insist on it.

Hat tip to Sophie Pilgrim of France24, see here.

Terroir is a near-mystical French term for soil, micro-climat, direction of wind. It is an important term used sometimes to justify Geographical Indications, see the video below:

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Thursday, August 11, 2011

Free Trade Agreement Between Costa Rica and China

Professor Aurelio López-Tarruella Martinez of the University of Alicante makes us aware via IP Tango that on August 1, 2011, two Free Trade Agreements (FTAs) entered into force: between Peru and Korea and between Costa Rica and China. Let's focus on the latter.

Professor López-Tarruella Martinez writes: "The FTA between Costa Rica and China includes specific provisions on generic resources, traditional knowledge and folklore and on geographical indications apart from general obligations to comply with TRIPS and Doha Declaration on Public Health, and on technical cooperation. There is a provision on border measures as well." You can find them in articles 109-117 of Chapter 10 Intellectual Property. Read the IP Tango article here.

So now China has the following three FTAs in the Western Hemisphere:
Costa Rica (2011)
Peru (2009), see here
Chile (2005), see here.
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Tuesday, June 07, 2011

Taiwan IP Update: First Country That Protects Hologram In Its Trademark Law

Taiwan has amended its Trademark Act May 31, 2011. What has changed?
Progressive trademark act,
but with olfactory deficiency
Photo: NASA via Wikipedia
  • Listing counterfeit merchandise online will be punishable by fines of up to NT$50,000 and up to one year in prison. 
According to the director-general of Taiwan Intellectual Property Office (TIPO), Wang Mei-hua (王美花) the scope of trademark protection expanded to include: 
  • animation (movement) and laser logors (hologram);
  • three-dimensional shape, colour and sound, already since the Examination Guideline for 3D, Colour and Sound Marks on 1st July 2004;
  • and already since the Trademark Act November 2003 word; figure and symbol. 
Some argue that holograms are not perceived as sources of origin by consumers. But one can also argue that that article 15 (1) Trade-related Aspects of Intellectual Property Rights (TRIPs) does include holograms: "Any sign, or any combination of signs, capable of distinguishing the goods or services of one undertaking from those of other undertakings, shall be capable of constituting a trademark. Such signs, in particular words including personal names, letters, numerals, figurative elements and combinations of colours as well as any combination of such signs, shall be eligible for registration as trademarks. Where signs are not inherently ca pable of distinguishing the relevant goods or services, Members may make registrability depend on distinctiveness acquired through use. Members may require, as a condition of registration, that signs be visually perceptible.", most jurisdictions perceive some problems with the prescription of the last sentence that the representation needs to be graphically representable. Taiwan (Chinese Taipei) has become a member of the WTO of which TRIPs is an integral part on January 1, 2002.

Now a hologram's graphical representation changes per definition according to the angle you are taking towards it. However, since most intellectual property offices around the world already record the representations digitally, I think it should not have to be an insurmountable problem, as everybody who in the last few years bought a digital camera knows that these cameras include a movie function. So instead of photos, you can easily also make a very high quality movie of any dynamic representation. And even if you insist upon static photo's, there are cameras that can make a series of stills, each separated from the other by a fraction of a second.
 
The International Hologram Manufacturers Association (IHMA) is thrilled that Taiwan is the first country to protect holograms as a trademark. According to IHMA, Holograms can play a role in the authentication and detection process against counterfeit products, read here.  
Take notice that Taiwan is not taking the lead in every trademarkable representation. Scent is not specified as protectable representation. However, in case companies register it, TIPO will study executive orders.

Read more about non-traditional trademarks in the archives of Dr. Ralph Sieckmann, here.
  • No longer is there a minimum limit for trademark infringement fines of 500 times the unit retail price of the infringed goods. Judges will have full discretion about the amount of the fine. 
  • Applicants for certificates of origin (Taiwan's Geographical Indications) will have to use the location of origin or the logo identifying the location in their application in accordance with the Trademark Act. 
Read the China Post article here.
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Friday, November 19, 2010

China Recognises Scotch Whisky as Geographical Indication

Great victory for the Scotch Whisky Association.

"Scotch Whisky’s registration as a GI in China – recognising Scotch Whisky can only be made in
Scotland - is the culmination of three years of discussions between The Scotch Whisky Association (SWA) and the Chinese Government. The announcement was made today [November 8, 2010] at a Ministerial meeting in Beijing between the Rt Hon Dr Vince Cable MP, the UK Business Secretary, and Mr Zhi Shuping, Minister of China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ)."

Protection is great, but whether it will be enforced is another question. You can say the glass is half full or half empty. Let's chose for the first option for now. So, congratulations to the Scotch Whisky Association for its stamina, or rather: cheers!

Read more here. Hat tip to Managing IP, see here.

UPDATE: December 12, 2010
China unveiled high-end whisky for 18,000 Renminbi per bottle, read K.J. Kwon's Reuters article about it here.
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Monday, March 22, 2010

Cheese With A Double Identity Crisis: Dutch, No Chinese, No Kiwi

Last Saturday this consumer strolled through the Park N Shop Super Store in Tsuen Wan, near the Tsuen Wan MTR line towards Central, Hong Kong, and was confused not once, but twice.

Firstly, because when he saw Edam on the package, he associated the cheese with the city in the Netherlands with the same name. Edam cheese, one assumes, is produced in Edam. However, when he read the promotional line: "A smooth Dutch-style cheese with a light fresh flavour" he knew his association was a mistake, since it is not a real Dutch cheese, but only Dutch-style.

Intrigued by the origin of the cheese, (and flattered by the combination of the words Dutch and style) he was looking for clues of the place of origin of the cheese. When one is in Hong Kong and reads 'Mainland', in the lion's share of cases the People's Republic of China is meant. Therefore yours truly was confused for the second time, since the manufacturer is a New Zealand company named Mainland, based in Dunedin.

Against this kind of confusion the Agreement on Trade-related aspects of Intellectual Property Rights (TRIPs) mandates protection via Geographical Indication (GI)'s. According to the World Intellectual Property Organization (WIPO) a Geographical Indication (GI) is "[...] a sign used on goods that have a specific geographical origin and possess qualities or a reputation that are due to that place of origin." Read more here.

The best article I have ever read about GI's was written by Professor Justin Hughes of the Cardozo School of Law, Yeshiva University of New York. Professor Hughes proposes three basic purposes of GI's: (1) to communicate geographic source, (2) to communicate (nongeographic) product qualities, and (3) to create evocative value. Read his excellent article 'Champagne, Feta, and Bourbon - the Spirited Debate About Geographical Indications'.

Professor Hughes describes the two basic approaches in national
law protecting GIs: "either a free-standing appellations law or the use of certification marks within trademark law." So appellations law, which is used in the EU versus certification marks, which is used in the US. China seems to side with EU on this issue, but on second thought it is more complicated.

How does China protect geographical indications?
  • The State Administration of Industry and Commerce (SAIC) is protecting it via the trademark law, implementing regulations for the trademark law, measures regarding the registration and administration of collective marks and certification marks.
  • The Administration for Quality Supervision Inspection and Quarantine (AQSIQ) protects it via the product quality law and standardization law
  • Ministry of Agriculture via administrative measures.
Read more about China's solution to protect GI's in Jinhua Ham's article 'Application of geographical indication systems in China' here.

So China seems to protect GI's via three separate administrative institutions. This could on the one hand cause some coordination problems in the protection of GI's and ambiguity for manufacturers of agricultural produce about how to product their GI, and on the other hand it could increase competition between these administrative institutions, which could ameliorate the quality of protection.

Read more about China's views on GI's here (IP Dragon) and here (WIPO magazine) and here (EU-China trade project).

For a confusing title read 'China owns 600,000 geographical indication trademarks for agricultural products' (People's Daily Online). In the article, however, you will find statistics that China had 531 geographical indications and 600,000 trademarked agricultural products at the time the article was published (2008).
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Wednesday, October 28, 2009

Professor David Llewlyn Explained All IPRs in One Hour

IP Dragon was attending yesterday evening the very inspiring lecture of Professor David Llewelyn at the University of Hong Kong, about the importance of intellectual property rights for not only experts, but everybody.

Professor Llewelyn made clear that the lecture was a public lecture meant for non-experts; the normal consumers; and put experts and expertise in perspective. He quoted Lord Denning that in the dictionary for example the word barrister comes directly after bankrupt and just before bastard. "IP needs to be understood, especially in this part of the world [referrring to Asia] by many constituencies that don't relate to each other. Patent people can only think about patents. Trademark people about trademarks etc." Professor Llewelyn was determined to speak only about the good things of intellectual property rights, so not about counterfeiting, pirating and the pressure of the developed countries on local developing governement officials.

Professor Llewelyn was referring to patent in all its meanings. The sentence: "It is patent" for example means "It's available." He was recalling Huawei who overtook the number one position of the company with the most patents from Panasonic. Professor Llewelyn was going to say only good things about IPRs, but as a good friend of IPRs, he critisised IPRs starting with patents: most were vanity publishing.

Then he was filleting the quality of some Hong Kong patents, and after a pit stop to the "stepsister of patents': trade secrets, he was off to trademarks. Professor Llewelyn told about the dispute between Jiangyou in Sichuan province and Anlu in Hubei province, who both claim their city as the hometown of the famous poet from the Tang dynasty called Li Bai.Jiangyou was not amused when they became familiar with a commercial on China Central Television (CCTV) that identified Anlu as the hometown of Li Bai. According to the South China Morning Post, Xinhua reported that the Jiangyou had registered the trademark "the Hometown of Li Bai, the City of Chinese Poems" in 2003. Therefore Anlu's commercial allegedly violated the trademark. Never mind that Jiangyou nor Anlu was the birthplace of the ancient poet, which was small town in what now is Kyrgyzstan, as the South China Morning Post mentioned.

Professor Llewelyn urged companies to think ahead: Chinese computer maker wanted to expand abroad, but they forsaw problems with the trademark legend that was already trademarked in many countries. Therefore they decided to change their name into Lenovo, which is distinctive enough and not descriptive or laudatory. Professor Llewelyn pointed out the possibility that trademarks could be used in an unfair manner, to bully other companies into submissiveness. As an example he gave KFC who sued an neighbourhood restaurant for infringement of the use of the trademarked term 'family feast'. He draw the history of Hong Kong artist Michael Lau and his relation to trademarks/bootlegs.

Genericide was discusses as well. Escalator, tabloid were generic names, but not roller blades.

Then the subject changed to geographical indications. The danger always lurks that two states, such as Indonesia and Malaysia start fighting over a term for food: such as who owns Nasi Lemak.

The territorial nature of intellectual property rights were discussed.

Copyrights you obtain for nothing; but the flipside is that they only forbid the right to copy; and another challenge is the digital era, as you can read in "Free", the book by Chris Anderson. Professor Llewelyn referred to China's threats to sue over fake terracotta warriors, as a subject that is outside the scope of copyrights. Professor Llewelyn compared it with the Egyptians that want to copyright the pyramids.
Normal copyrights are the life of the creator plus 50 years (China, which is TRIPs standard) or 70 years (many countries). In the UK there is special legislation for the play 'Peter Pan, or the boy who whould not grow up' to give it perpetual copyright in order to finance the Great Ormond Street Hospital.

Among intellectual property rights are strange creatures, such as database rights.
And many new players such as UNESCO are getting in to the act as well to protect rather exotic new intellectual property rights.

Intellectual property rights are liabilities, unless you do something with them. Commercialisation is getting more popular.

There are only five countries in the world with a net balance of payment: US, UK, Japan, Sweden and France. China has taken this well into account and makes sure that it is self innovating in order to avoid to pay too much royalities.

When one analyses intellectual property rights one can do it from many perspectives. An academic (access to information) has another perspective than an author of a book (control of information). Professor Llewelyn told about a student in Beijing who asked him to sign a copy of his book that was "better bound than [his publisher] Sweet & Maxwell."

Anti-competition law is becoming more important in intellectual property right law. Professor Llewelyn advocates a balance between extremes.

A development we must take an eye on is according to Llewelyn developing countries, such as India, that demand green technology of the developed world.

Hong Kong lawyers were always more interested in transactions of IPRs, registering etc. than in advising them about how to best exploit their IPRs.

In 60 minutes Professor Llewelyn covered a lot of ground. Ron Yu asked him whether IPRs are not getting too complicated for the average consumer. Professor Llewelyn answered: "Yes and also too complicated for the experts."

IP Dragon asked him about his take on the new international IPR forum ACTA, and whether it would be a threat to forums such as WIPO and WTO's TRIPs? Professor Llewelyn answered that he does not like the new forum, it will be more complicated.

So there will be a great need for people who can explain and illuminate these complicated issues in an inspiring way in the future, just like Professor Llewelyn.
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Tuesday, June 09, 2009

Sino-Japanese IPR Memorandum of Understanding: What Does It All Mean?

Although the text of the IPR MOU between China and Japan is not available, Adam Smith of the World Trademark Review tried to make sense of it all and prognose what the results will be of the negotiations/cooperations and asked yours truly in the process.

Read Mr Smith's article 'China and Japan sign IP rights cooperation agreement' here.
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Tuesday, June 10, 2008

Japan On Chinese trade marks of Japanese Locations: "Can't Touch This"

The Japanese Patent Office declared it wants to stop Chinese companies registering Japanese geographical locations as trade marks.

"The two languages share many characters and Japan's Kyodo news agency said thenames of 19 of the country's 47 prefectures including Kyoto, Nagano and Yamaguchi had been registered as trademarks in China by the end of last year."

Read the Agence France-Presse article via NipponExpressUSA here.

Head tip to Jeff Roberts of McGill's IP News This Week, "a 5-minute report about the latest IP news in the world", worth reading much longer.
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Sunday, October 28, 2007

Pinggu Peaches Only From China: China's Position on GI

On June 21, IP Dragon mentioned that there would be an international symposium on geographical indications (GI) organised by the World Intellectual Property Organisation (WIPO) and China's State Administration for Industry and Commerce (SAIC) in Beijing, June 26 to 28, see here. So it is the highest time to find out what China's position is.

Let us first take a look at the terminology of geographical indications.
What is GI's relation to the concepts indication of source and appellation of origin?
Mr Marcus Höpperger, acting director WIPO's Law and International Classifications Division explains the differences and similarities:

Indication of source
Indication of source is used in articles 1 (2) and 10 of the Paris Convention for the protection of industrial property of 1883 (the original text of the Paris Convention did not provide for the prevention of the use of false indications per se, but only where such use occurred in connection with the use of a false trade name. This is not needed under the Madrid Agreement for the Repression of False or Deceptive Indications of Source on Goods) and throughout the Madrid Agreement for the Repression of False or Deceptive Indications of Source on Goods of 1891.

Article 1 (1) Madrid Agreement for the Repression of False or Deceptive Indications of Source on Goods: "[A]n indication of source can be defined as an indication referring to a country, or to a place in that country, as being the country or place of origin of a product."

Appellation of origin
Appellation of origin is defined in article 2 (1) Lisbon Agreement for the Protection of Appellations of Origin and their International Registration of 1958:
“Appellation of origin” means the geographical name of a country, region, or locality, which serves to designate a product originating therein, the quality and characteristics of which are due exclusively or essentially to the geographical environment, including natural and human factors.”

Geographical indication
Article 22 (1) TRIPs Agreement defines geographical indications:
"Geographical indications are, for the purposes of this Agreement, indications which identify a good as originating in the territory of a Member [of the World Trade Organization], or a region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographical origin.”

When comparing these definitions, Mr Höpperger observes: "Indications of source only require that the product on which the indication of source is used originate in a certain geographical area. Thus, there are indications of source, which seem not to be covered by the definition of geographical indication under the TRIPS Agreement, namely indications of source whose use on products does not imply a particular quality, reputation or characteristic of those products. Geographical indications are more broadly defined than appellations of origin. In other words, all appellations of origin are geographical indications, but some geographical indications are not appellations of origin." Read the WIPO document ( WIPO/GEO/BEI/07/7) here.

Approaches to protection
WTO members have to comply to the TRIPs Agreement, which is an intrinsical part of the WTO Agreement (Annex 1C). China is a WTO member since 2001. According to TRIPs, member states such as China have to protect geographical indications. But there is a wide variety of different approaches to choose from:
  • Unfair competition laws (passing off);
  • Consumer protection acts;
  • Agricultural quality control regimes;
  • Trademark laws (collective and certification marks);
  • Registration under specific sui generis GI laws.
Which approach or approaches did China choose to protect GI nationally?
In 2006 the US Patent and Trademark Office reported that: "[ ..] China protects geographical indications through a trademark system, administered by the CTMO. However, China has a second system for protecting geographical indications, administered through a separate government agency, which has led to confusion over protection of geographical indications and trademarks." Read more here.

The second government agency can be identified as the General Administration of Quality and Security Inspection and Quarantine (AQSIQ). Article 26 Provisions for the Protection of Products of Geographical Indications:
"The AQSIQ shall accept the applications for registration of foreign geographical indications in the People’s Republic of China, and accord the protection thereto. Specific provisions to this effect shall be separately formulated." See the Provisions for the Protection of Products of Geographical Indications here.

Contentious issues
The contentious issues under discussion in WTO are:
Negotiations on the establishment of a multilateral system of notification and registration of GIs for wines, as foreseen by article 23 (4) TRIPs.

There are three proposals towards notification and registration in order to be able to protect GIs internationally:
  • The Joint Proposal in TN/IP/W/10 sponsored by: Argentina, Australia, Canada, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Japan, Mexico, New Zealand, Nicaragua, Paraguay, Chinese Taipei and the United States. These Members propose a purely voluntary system. Members wishing to participate would notify a list of GIs, which would then be recorded on a database administered by the WTO Secretariat. Participating Members would commit to ensure that their procedures include the provision to consult the database when making decisions regarding registration and protection of trademarks and GIs for wines and spirits in accordance with its domestic law. Non-participating Members would be encouraged, but would not be obliged, to consult the database.
  • The EC proposal in TN/IP/W/11: it proposes a system whereby Members electing to participate would notify GIs into the system. Upon publication, other Members would have a 18-month period to lodge a reservation (i.e. to challenge) the notified GI on certain grounds, such as non-compliance with Article 22.1 definition or genericness. In the absence of challenges or if the challenges are withdrawn, the GI would be registered. Differences regarding challenges would be resolved through direct negotiations between the notifying and challenging Members. Once registered, the GI would produce an irrebuttable (i.e. no longer challengeable) presumption of eligibility for protection in the Members who have not challenged the GI or have withdrawn the challenges. This presumption also applies to non-participating Members that have not lodged reservations within the 18 months. The registered GI can be challenged at any time in participating Members on other grounds such as prior trademarks or grandfathered uses.
  • The Hong Kong, China proposal in TN/IP/W/8: it proposes a voluntary system whereby a registered GI would create a rebuttable presumption or “prima facie evidence” in participating Members with regard to the ownership of the GI, compliance with Article 22.1 definition and protection in the country of origin. While Hong Kong, China is not a producer of wines and spirits, it has made the proposal for systemic reasons. Its concern is that failure in this negotiating group might endanger the whole Round.

Source is the presentation by Ms Thu-Lang Tran Wasescha, counsellor Intellectual Property Division, WTO here.

The other contentious issue is the extension to other products of the higher level of protection, besides wines and spirits, which article 23 TRIPs affords to GIs. There is no requirement for these products that the non-authorised use of the GI is misleading. My guess is that China's position on this issue is pro, because of China's evident interest in this area.

Naturally, China wants to be able to enforce against international unauthorised users of the GIs Zhangqui Scallion, Xianju Waxberries, Dalian Jinzhou Big Cherries, Qianxi Chestnuts, Ningxia Red Lycium, Pinggu Peach.

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Friday, June 22, 2007

Geographical Indications Go China

The World Intellectual Property Organization (WIPO) and the State Administration for Industry and Commerce (SAIC) of the People’s Republic of China in Beijing have organised an international symposium on geographical indictions (GI), from June 26 to 28, 2007.

What is a GI?
According to WIPO:

"A GI is a sign used on goods that have a specific geographical origin and possess qualities or a reputation that are due to that place of origin. Most commonly, a GI consists of the name of the place of origin of the goods. Agricultural products typically have qualities that derive from their place of production and are influenced by specific local factors, such as climate and soil. Whether a sign functions as a GI is a matter of national law and consumer perception. GIs may be used for a wide variety of agricultural products, such as, for example, “Tuscany” for olive oil produced in a specific area of Italy (protected, for example, in Italy by Law No. 169 of February 5, 1992), or “Roquefort” for cheese produced in France (protected, for example, in the European Union under Regulation (EC) No. 2081/92 and in the United States of America under US Certification Registration Mark No. 571.798). Geographical indications are a useful means by which to add value and prestige to niche products in the marketplace. Certain aspects of GI protection are currently under negotiation in the World Trade Organization as part of the so called “Doha Round of trade negotiations”." Read more about GI here.

Read the press release about the international symposium in Beijing here.

What is China's position on GI?
The site of the US Trade Representative reported in 2006:
"China protects geographical indications through a trademark system, administered by the CTMO. However, China has a second system for protecting geographical indications, administered through a separate government agency, which has led to confusion over protection of geographical indications and trademarks." Read more here.

And Tove Iren S. Gerhardsen of Intellectual Property Watch wrote in 2006 about China's self perceived upgrade from a GI semi-friend to a GI friend. Read more here.
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